Abstract

the purpose of this study is to examine relationship between characteristics of board of commissioners and its companies financial performanse. the characteritics are proxied by the proportion of independent commissioner, the commissioner president's ethnic background, educational background, the number of commissary board meeting as a variable, the proportion of independent as the independent audit committee. this study also investigates leverage and firm as control variable. the companies financial performance is measured using CFROA (cash flow return on asset) the sample taken in this research was 90 companies from all industrial sectors service, finance and manufacture, including mining. this study employed a hypothesis test using logistic regression, multiple regression, t-test and ANOVA analysis of statistical result the commissioner president ethnic background the numer of audit committee meeting and leverage are as significant predictors to companies financial performance